Sainsbury has reached agreement on the key financial terms for the possible acquisition of Home Retail Group, valued at GBP1.3 billion. The deal value represents 63% premium to the closing price of a Home Retail Group share on 04 January 2016. With this deal, Sainsbury’s’ expects to generate EBITDA synergies of GBP120 million in the third full year after completion.
The combination of Home Retail Group and Sainsbury’s will have an opportunity to offer complementary products, focus on delivering quality products and services at fair prices, through an integrated, multi-channel proposition.
- Food and non-food retailer of choice for shoppers, building on the strong brand heritages of both the businesses which are renowned for trust, quality, value and customer service.
- Deliver profitable sales growth by offering shoppers the right combination of store location, range, speed and flexibility, across a wide range of products.
- Enhance multi-channel capabilities including digital, store and delivery networks to provide fast, flexible and reliable product fulfilment to store and home.
- Optimize the combined retail space together as they have attractive located stores across the UK, with an enhanced supply and delivery network and a strong presence across food and non-food categories